Indonesia bets on palm oil to achieve energy independence

Indonesian President Prabowo Subianto has reaffirmed the strategic role of the country’s palm oil industry in achieving national energy independence. Speaking at the closing ceremony of the 17th National Farmers and Fishermen Week on June 24, he said that Indonesia’s success in boosting food production should now be matched by similar achievements in the energy sector.

The president emphasized that palm oil-based bioenergy will play a crucial role in reducing the country’s dependence on imported fossil fuels. According to him, the development of the biofuel industry is one of the cornerstones of Indonesia’s long-term energy strategy.

Prabowo also announced the launch of the B50 biodiesel program in July 2026. The new mandate will require diesel fuel to contain a 50% blend of biodiesel produced from palm oil, marking the next stage in Indonesia’s biofuel policy following the implementation of the B35 and B40 programs.

According to the president, using palm oil as an energy feedstock will not only strengthen national energy security but also create greater value for one of Indonesia’s leading agricultural commodities. He stressed that the country should move beyond being a raw material supplier and become a producer of renewable energy while seeking to play a larger role in setting global palm oil price benchmarks.

The B50 mandate is expected to boost domestic demand for palm oil at a time when the industry continues to face volatility in global markets and evolving export challenges. Higher domestic consumption could provide a more stable demand base for crude palm oil and support incomes for oil palm growers.

Prabowo expressed confidence that Indonesia could achieve energy self-sufficiency within the next three to four years if industrial development, bioenergy expansion, and renewable energy programs continue as planned. The government hopes that the launch of B50 will help the country not only maintain its position as the world’s largest palm oil producer but also become a leading example of how the commodity can support national energy sovereignty.

Tags: Indonesia, palm oil, biofuel